Podcasts about AM Best

Summer is here—and while kids are counting down the days until school's out, parents and grandparents might be counting something else: the cost.The good news? Some of the best family memories don't require a big budget. In fact, many of them are completely free. With a little creativity and intention, you can enjoy a summer that builds connection and joy without adding financial stress. Here are ten fun, meaningful, and no-cost activities to try this season.1. Visit Your Local LibraryLibraries today are vibrant community hubs, not just quiet places for books. Many offer summer reading programs, puppet shows, craft days, and even LEGO clubs. It's a screen-free space that fosters imagination and learning—and it won't cost a dime.2. Host a Themed Movie NightMovie nights are a classic, but turning them into themed events can make them feel extra special. Dress up like your favorite characters, make popcorn at home, and stream free movies from your library or other no-cost platforms. It's cozy, creative, and fun for all ages.3. Check Out Community EventsMany cities and towns host free concerts, movie nights, festivals, or farmers' markets during the summer. These events offer fun, fellowship, and a chance to connect with your community.4. Camp in Your BackyardYou don't need to travel far to enjoy the great outdoors. Set up a tent in your yard, roast marshmallows, and tell stories under the stars. Take time to reflect on God's handiwork with your kids. Psalm 8:3–4 reminds us how the majesty of creation points us to the Creator who cares for us deeply.5. Host a Yard SaleLet your kids gather items, make signs, and manage a mini storefront. It's not only a great way to declutter—it also teaches stewardship, contentment, and even generosity. If your kids choose to give a portion of the proceeds to someone in need, you're planting seeds of compassion early.6. Try GeocachingIf your family enjoys treasure hunts or geocaching, it's a great way to explore the outdoors. All you need is a smartphone and a free app to search for hidden “caches” in your area. It's adventurous, educational, and completely free.7. Plan a Neighborhood Game DayBring back the joy of simple play. Organize a kickball game, water balloon fight, or capture the flag in your neighborhood. Partner with other families to rotate homes and activities—it's a no-cost way to foster community and make memories that stick.8. Make a Summer Bucket ListSit down as a family and dream up a list of simple activities—things like catching fireflies, building a fort, or learning a new skill. Writing them down and checking them off together adds a sense of excitement and shared accomplishment.9. Explore NatureNature is one of God's most generous gifts. Visit local parks, walk trails, or bike together through a nearby preserve. Psalm 19:1 reminds us, “The heavens declare the glory of God.” Whether it's birdsong or wildflowers, creation invites us to slow down and worship.10. Serve TogetherServing others is one of the most meaningful things a family can do. Volunteer at a local shelter, visit a nursing home, or make cookies for your neighbors. Jesus said, “It is more blessed to give than to receive” (Acts 20:35). A summer of service can have an eternal impact.The Riches of a Simple SummerIt's easy to believe that a fun summer must come with a hefty price tag, but God often surprises us with joy in the simplest things. Sunshine, laughter, love, and time together are among His most generous gifts—and they're completely free.So, as you make your summer plans, don't focus on what you can spend. Instead, focus on how you can wisely steward the time and relationships God has given you. After all, the best summer memories are built with presence, not purchases.On Today's Program, Rob Answers Listener Questions:I'm looking into annuities, and I know nothing about the risks. When they say 6% for three years, is that rate guaranteed to remain locked in? I looked up the rating, and it's a B++ rating by AM Best.I have a long-term insurance policy from Genworth that started in 1999. The premiums have increased dramatically from $1,500 to $11,000 annually. We're in our early 80s and nearing the time to use the policy. The company wants us to sell, but we have a clause that stops premium payments if one of us dies. I'm unsure whether to keep the policy. I'm 60 years old and have worked at the same job for 40 years. I've become chemically sensitive to the product we manufacture and can no longer work with it. I'm basically at retirement, with all bills paid and a house paid off. I have $500,000 saved in CDs, $60,000 in the bank, and I'm thinking of putting half of the $500,000 in a lifetime mutual fund. Is that a wise decision?Resources Mentioned:Faithful Steward: FaithFi's New Quarterly Magazine (Become a FaithFi Partner)Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money (Pre-Order)Look At The Sparrows: A 21-Day Devotional on Financial Fear and AnxietyRich Toward God: A Study on the Parable of the Rich FoolFind a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)FaithFi App Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.

Sridhar Manyem, senior director, industry relations Americas, AM Best, discusses regulatory sandboxes for testing products, and how AI is being used in pricing and claims. Manyem spoke with AM Best TV at the InsurTech Hartford Symposium 2025.

On this installment we're joined by Itai Ben-Zaken, founder and CEO of Honeycomb, an MGA with AI-driven technology to analyze aerial photographs of commercial building roofs to assess … Read More » The post Honeycomb Addresses Multifamily Housing Coverage appeared first on Insurance Journal TV.

On this installment we're joined by Itai Ben-Zaken, founder and CEO of Honeycomb, an MGA with AI-driven technology to analyze aerial photographs of commercial building roofs to assess … Read More » The post Honeycomb Addresses Multifamily Housing Coverage appeared first on Insurance Journal TV.

Seoul, Korea episode Listener Story Spotlight A friend and a listener named Lois recently went to Hawaii. She told me she spent much time getting travel insurance for herself and her partner. She had to pay more than she expected as her partner was having a birthday between the day she bought the service and the day of the trip. But she said it was well worth it for her peace of mind. The FAQ for today is: Where to find the best travel insurance for a long trip abroad. 1. Start with a neutral comparison engine; you can see this in the show notes. Why use it first? Where to click Smart filters to enable It lets you price 30-day single-trip plans from dozens of underwriters side-by-side, then click through to the policy certificate in one step. Squaremouth (toggle "Comprehensive" or "Medical-only" to see apples-to-apples pricing). Squaremouth Travel Insurance Medical ≥ $100k, Evac≥ $250k, "Cancel for Any Reason" if you want maximum flexibility. Gives you consumer-written claim reviews plus AM Best financial ratings in the results grid. InsureMyTrip (same data feed as Squaremouth but different sort logic). Add "PIf relevant, existing condition waiver" if rek "Adventure sports" if you'll hike or dive. Pulls quotes from some insurers that don't feed aggregators (e.g., Allianz's higher-tier plans) and lists A.M. Best scores. TravelInsurance.com Use the "24/7 assistance" toggle to see which plans outsource helplines. Skeptical check: All three make a commission, and none of them has every carrier. Run your trip through at least two engines and see if the so-called "cheapest" plan is available.     2. Cross-reference with an independent ranking list U.S. News "Best Travel Insurance Companies 2025" ranks plans by coverage and claim-paying history—not advertising spend. It's a fast way to see which names (Travelex, Allianz, Tin Leg, etc.) consistently show up in the top tier. U.S. News     3. See what other solo women say SoloTravelerWorld.com keeps an updated "Best Travel Insurance for Solo Travelers" guide that spells out what to look for if you're traveling alone—single-supplement benefits, harassment coverage, and 24-hour crisis lines. Solo Traveler AbsolutelyLucy.com lays out five red flags that matter disproportionately to women (e.g., personal-assault medical limits, emergency contraception exclusions). Absolutely Lucy Read these before you fall for glossy Instagram ads that treat "female-friendly" as a slogan.     4. Kick the tires on the insurer's site If a plan looks good in a marketplace, open the policy certificate directly on the carrier's website (World Nomads, SafetyWing, Allianz, IMG, etc.). World Nomads publishes unfiltered claim reviews, which help sniff out chronic payout delays. World Nomads     5. Verify what your government will—or won't—do The U.S. State Department's Insurance Coverage Overseas page makes it crystal-clear that Uncle Sam does not pay your hospital bill or med-evac. It also links to the embassy medical resources for every country, which tells you how far the nearest trauma center is from your trekking trail. Travel.gov     6. Double-check your credit-card benefits Cards in your wallet may cover trip delays, baggage loss, or secondary car rental insurance. The Points Guy keeps a running tally of cards whose built-in coverage is worth something and where the gaps are (e.g., no medical evacuation).     How to use these resources efficiently Quote your exact dates (don't round your trip to a calendar month; excess days add cost). Filter for medical & Evac first; those two benefits can bankrupt you. Ignore marketing buzzwords like "explorer" or "adventure" until you've opened the PDF certificate and searched for the activity you plan to do. Run your final four shortlist past recent claim reviews (Squaremouth, Trustpilot, Reddit r/solotravel) to see if the carrier ghosted people during COVID or the Israel–Gaza cancellations. You can purchase directly from the insurer once you've chosen, which avoids aggregator change fees if you need to modify dates. Stay curious, question every "Top 10" list's methodology, and you'll land the coverage that fits your risk profile—nothing more, nothing less. 60-second confidence challenge 3 things: neighborhood selection, daylight itineraries, scam avoidance Select walkable neighborhoods with public transportation nearby if you don't drive. Read reviews on the AirBNB website before you select. When booking a flight or train, be sure it arrives at daylight, which can differ in winter months. If it comes after dark, it will be more challenging.  To avoid scams, be cautious when choosing passwords, logging out of websites, and making online purchases. These are very typical scams. If you are suspicious, you may be right to avoid that vendor and choose another. Don't look like a target, either.   If you like today's Confidence Challenge, Chapter 1 of my book dives deeper—https://www.5stepstosolotravel.com   See Book A for addressing all of these items. Find it on the website or Amazon. It's a series. Today's destination is:  South Korea  I visited South Korea last month. I landed at Seoul's Inchon Airport. My Korean pronunciation is not good, so please understand that as I describe my trip. I was excited to see the city through the eyes of my friend Chris. We were whisked away to a hotpot dinner, then taken to the French neighborhood in Seoul, where we rested for the night. The next morning, we drove south to visit a town about 2 hours away and stayed in Wolbong-ro (Road), in Seobuk-gu, near SeongJeong.   For example, the Seoul Noryyanglin Fisheries Wholesale Market is five stories tall and open to the public. It's worth seeing if you like seafood, and you can roam the aisles looking for your favorite fish delicacies.   I visited the Vovo Bidet company and met with the director and some of his team. Have you seen the #1 Bidet firm in Korea? They have retail and wholesale offices in the Los Angeles area, too. I liked the tour of the offices here in Seoul. They even have a Bidet to go. Think about that for a minute. That was in Daebang-dong or Seocho4-dong. I visited retail stores such as Zara, one of my favorites for fashion. I had Chinese, Japanese, and Fusion foods. I took subways, busses, taxis, and Ubers plus trains. I went to Gwannghumun Square, the purple Station #9. I went to the shopping mall called The Hyundai. and found stores like Zanmang Loopy, the Hyundai Present, and a great coffee and tea shop. I learned about Hanguel, the Korean alphabet, and saw the statue of Sejong the Great. There was also another statue of Admiral YiSun Sin. The Bukchon Honok Village is a quiet residential area. Jogyasa Temple is where you will see Buddism. Hongdae is the neighborhood for independent artists.   Yonsei University was a place I wanted to visit next time, as I was in the neighborhood and liked it a lot. Gangnam style, well, maybe next time. I tried new foods, such as mung bean pancakes and hotleok desserts. We had a wonderful dinner at Sushi-ya Shabu-ya, about an hour from Seoul, near Korea Nazarene University in Cheonan-si-Buldang1-dong. Recommended: Relax in a tea house. Smart Move and Slip up pairings In Korea, we were departing from the airport without enough money on our transit cards, so we could not enter the building. Instead, we had to see the office at the kiosk and pay for the train. It was not much, but it did take a few minutes. We arrived well ahead of the recommended 3 hours, so that was not an issue. 60 second confidence challenge Do you or don't you tip? Not in South Korea. But it's always smart to ask. Be confident when you know what the expectations are.   Resources Roundup   If you are looking for more solo female travel resources, you can find several tips and ways to navigate the pitfalls, such as paying the difference on the transit card when you go long distances or knowing when to tip.   When you get lost, don't get upset. Get found. You will be better off if you cool down instead of heating your brain incorrectly. Chill, and you'll be found sooner. Dr. Travelbest's tip #760.    

Dawn Walker, associate director, AM Best, warns of privacy concerns as the sector increasingly adopts automation technologies. Walker spoke with AM Best TV at the InsurTech Hartford Symposium 2025.

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, is joined by Ken Johnson, CFA, CAIA, FRM, Senior Managing Director and Chief Ratings Officer at AM Best. Together, they unpack AM Best's latest outlooks on the property & casualty and life insurance sectors—covering everything from macroeconomic uncertainty to the rise of private credit, offshore reinsurance, and how ratings methodology is adapting to today's dynamic insurance investment landscape.   Ken shares his take on the growing role of asset manager-owned insurers, the shift toward more complex ownership structures, and the increased reliance on less transparent asset classes. He also discusses AM Best's internal working groups and how they aim to strike a balance between robust capital modeling and fair treatment for insurers with evolving portfolio strategies. Whether you're a CIO, portfolio manager, or regulator, this discussion sheds light on how risk, regulation, and ratings intersect in today's market.

Wai Tang, senior director, and Matt Tuite, director, both of AM Best, discuss a new Best's Special Report that finds ILS capacity reached a record high in 2024, as did issuance of 144A natural catastrophe bonds.

Rapid premium rate increases, coupled with pockets of higher reinsurance pricing, also expands the need for higher capital, said Jason Hopper, associate director, AM Best, discussing a new Best's Special Report.

AM Best Senior Director Jacqalene Lentz outlines a new Best's Market Segment Report that finds despite weather-related catastrophe losses, overall P/C underwriting results improved in 2024, and AM Best expects the industry to build on its solid rebound in 2025.

This week, we speak with Dawn Walker, Associate Director at AM Best, about Delegated Underwriting Authority Enterprises (DUAEs). We discuss: • What DUAEs are and their significance to the insurance market. • The history of the DUAE market and how it has evolved. • AM Best's latest research on DUAEs • The new opportunities DUAEs are bring to the insurance market.

Joseph Zazzera, director, and Jon Housel, senior financial analyst, both of AM Best, discuss a new Best's Market Segment Report that finds capitalization and liquidity remain strong, but the segment faces several earnings headwinds.

A panel of insurance marketing experts discuss innovative and evolving applications of data and predictive analytics in marketing and highlight key metrics and ratios that insurance marketers should understand to communicate effectively with their peers and stakeholders. This was a joint presentation of the Insurance Marketing & Communications Association (IMCA) and AM Best. (Event Date: January 24, 2025)

AM Best Director Matt Tuite discusses the factors fueling the record-breaking expansion of the insurance-linked securities market, including strong investor returns, rising Cat bond issuance, and evolving investor appetite. Tuite spoke with AM Best at the Artemis ILS conference in New York.

David Blades and Christopher Graham, AM Best, discuss the latest inland marine Insurance trends, including pet insurance profitability and travel insurance recovery.

AM Best's Aaron Li discusses a new special report that examines how the rapid adoption of new energy vehicles in China is affecting motor insurers and the motor insurance market.

AM Best senior analytical staff explore common types of insurance ABS transactions and the key assumptions behind their ratings. They will discuss the default rates applied to the transactions' collateral, the asset-dependent recovery rates, the use of credit substitution and enhancement on collateral and rated securities and the determination of the implied rating of the securities by applying AM Best's Idealized Issue Default Matrix.

Dawn Walker is an associate director, Industry Relations (DUAE) in AM Best's Strategy and Communications department. Dawn has more than 15 years of insurance industry and risk management experience, and joined AM Best in 2022, initially serving as a senior financial analyst, conducting performance assessments for Delegated Underwriting Authority Enterprises.  Previously, Dawn as a senior risk management analyst at MacAndrews & Forbes Inc., a global mergers and acquisitions firm in New York City. She also previously served as a senior account executive for Alliant Insurance Services, serving its ultra-high net worth book of business.  Dawn received her MBA degree with a concentration in Enterprise Risk Management at St. John's University. She graduated Cum Laude earning a Bachelor of Law degree from the University of Arizona. She holds a Property & Casualty and Life & Health Broker's license, has earned an Associate in Risk management (ARM) designation and is actively pursuing a Charter Property Casualty Underwriter's designation. Highlights from the Show AM Best is known for many things, but mainly for the assessments and ratings they perform on players across the insurance industry. For the Delegated Underwriting Authority Enterprise (DUAE) space in particular, they are bringing transparency to help drive continued growth not only of the DUAE segment, but the product innovation that goes on within it. The level of growth in the delegated underwriting authority space has been huge, getting to $77B in the US alone, and making up 10% of the P&C market globally. The key areas they look at when assessing DUAEs includes Operations, UW Capabilities, Governance and Controls, Financials and Corporate Structure. This analysis helps bring transparency to the sector to help facilitate partnerships while also giving DUAEs a blueprint for how to optimize their operations for growth, stability and, ultimately, success Why do insurers work with Delegated Underwriting Authority Enterprises (DUAEs), like MGAs and MGUs? Can't they just compete in the market directly? DUAEs bring expertise in niches and market segments that incumbent carriers may not be able to build efficiently given their scale, and the relative size of these niches being too small to support the operational cost of a carrier. DUAEs often come with expertise and distribution in the segment, allowing carriers working with them to access new spaces efficiently, quickly and profitably. What can support or stand in the way of the success of a Delegated Underwriting Authority Enterprises (DUAEs), like MGAs and MGUs? AM Best performs assessments of these entities to bring transparency to key success factors insurers would look at when deciding whether to work with a DUAE or not. This episode is brought to you by The Future of Insurance thought leadership series, available globally from Amazon in print, Kindle and Audible audiobook. Follow the podcast at future-of-insurance.com/podcast for more details and other episodes. Music courtesy of Hyperbeat Music, available to stream or download on Spotify, Apple Music, and Amazon Music and more.

Dr. Mathilde Jakobsen and Tim Prince, both of AM Best, said the reinsurance sector has maintained a positive outlook, upgraded from stable earlier in the year, primarily driven by performance. Both spoke with AM Best TV at AM Best's Europe Insurance Market & Methodology Briefings – London.

Andrea Keenan, EVP and chief strategy officer, AM Best, expressed confidence in the sector's adaptability, citing its evolution from horse-and-buggy to automobile coverage. Keenan spoke with AM Best TV at the Global Insurance Forum in Miami.

Angela Yeo and Mahesh Mistry, both of AM Best, outline the increasingly complex nature of global risk assessment in the insurance industry. Both spoke with AM Best TV at AM Best's Europe Insurance Market & Methodology Briefings – London.

Jose Berenguer and Romeo Berti, both of AM Best, said insurers' adoption of IFRS-17 has not substantially altered the fundamentals of operating performance. Both spoke with AM Best TV at AM Best's Europe Insurance Market & Methodology Briefings.

Todor Kitin and Morgane Hillebrandt, both of AM Best, said growing economic uncertainty and escalating geopolitical conflicts have led to an anticipated increase in the frequency of cyberattacks.

Anthony Silverman and Konstantin Langowski, both of AM Best, said that while IFRS-17 represents a significant step forward in insurance reporting, the industry can expect continued refinement and development in reporting practices.

Greg Carter, managing director, analytics, EMEA & Asia Pacific, AM Best, said the turning point came as rising interest rates improved investment returns. Carter spoke with AM Best TV at AM Best's Europe Insurance Market & Methodology Briefings.

Edin Imsirovic, director, AM Best, said improvements in computing and data availability have created critical mass for AI development. Imsirovic spoke with AM Best TV at AM Best's Europe Insurance Market & Methodology Briefings – London.

Stefan Holzberger and Anthony Diodato, both of AM Best, said mutual insurers are de-risking portfolios, pursuing rate adequacy, adjusting terms and conditions, and implementing inflation-adjustable metrics in pricing algorithms. Both spoke with AM Best TV at NAMIC's 129th Annual Convention, held in Denver.

David Blades, associate director, and Christopher Graham, senior industry analyst, both of AM Best, highlight a Best's Market Segment Report that finds profits continued in 2023 and conditions are right for another strong year in 2024.

Firmly established for years as the leading open-invitation market presentation event at the Rendez-Vous in Monte Carlo, this briefing is a unique opportunity for reinsurance market insight and opinion ahead of busy bilateral meeting schedules. Key discussion points include: AM Best's trend analysis on the global reinsurance sector; if pricing discipline will be maintained; AM Best's global reinsurance outlook and the drivers of future rating movements; the impact of alternative capital and ILS; and key rating issues impacting all reinsurers.

Surplus lines insurers in 2023 reported another year of improved underwriting and operating results, with most performance metrics outpacing the broader P&C industry, according to the annual wholesale insurance market report card compiled by AM Best and the WSIA Education Foundation. The report's authors say this indicates just how essential wholesale insurance options have become. "The wholesale and specialty channel is there to provide solutions when the standard market either cannot or will not take on the risk," WSIA President and CEO Brady Kelly said on this week's episode of Insurance Speak. Kelly sat down for an interview in the run-up to his organization's 2024 Annual Marketplace, an event in which thousands of insurance professionals converge in San Diego to fortify business relationships and forge new ones.

Dawn Walker of AM Best was recently interviewed on the Insurance Nerds podcast, on which she detailed advantages of a Performance Assessment for delegated underwriting authority enterprises in providing transparency.

AM Best's analytical captive team and industry experts discuss the recent performance of the captive sector and other alternative risk transfer (ART) instruments.

Please join senior AM Best research staff and industry experts as they delve into the current state of the cyber insurance industry.

Please join senior AM Best research staff and industry experts as they delve into the current state of the cyber insurance industry.

Patrick Ryan, the founder, chairman, and CEO of Ryan Specialty will transition to the role of executive chairman on Oct. 1, when Tim Turner will become chief executive officer. They spoke to AM Best about their long relationship and the future of the company.

AM Best Financial Analyst Josie Novak highlights new research that finds the aggregate combined ratio for active Florida specialists, as well as Citizens, outperformed AM Best's personal property composite for the first time since 2017.

Every American who has a mortgage is required by their bank to have homeowners insurance, but getting it and keeping it is becoming a challenge. In this episode, hear the highlights of a Senate hearing examining the problems in the homeowners insurance market and why they might lead to much bigger problems next time disaster strikes. Please Support Congressional Dish – Quick Links Contribute monthly or a lump sum via Support Congressional Dish via (donations per episode) Send Zelle payments to: Donation@congressionaldish.com Send Venmo payments to: @Jennifer-Briney Send Cash App payments to: $CongressionalDish or Donation@congressionaldish.com Use your bank's online bill pay function to mail contributions to: Please make checks payable to Congressional Dish Thank you for supporting truly independent media! Background Sources Effects of Climate on Insurance Christopher Flavelle and Mira Rojanasakul. May 13, 2024. The New York Times. Chris Van Hollen et al. September 7, 2023. Chris Van Hollen, U.S. Senator for Maryland. Alice C. Hill. August 17, 2023. Council on Foreign Relations. Insurance Information Institute. Antonio Grimaldi et al. November 19, 2020. McKinsey & Company. Lobbying OpenSecrets. OpenSecrets. OpenSecrets. Heritage Foundation SourceWatch. Demotech William Rabb. April 15, 2024. Insurance Journal. Parinitha Sastry et al. December 2023. Fannie Mae Adam Hayes. May 17, 2023. Investopedia. Hurricanes National Oceanic and Atmospheric Administration. National Oceanic and Atmospheric Administration. Audio Sources Senate Committee on the Budget June 5, 2024 Witnesses: Glen Mulready, Insurance Commissioner, State of Oklahoma Rade Musulin, Principal, Finity Consulting Dr. Ishita Sen, Assistant Professor of Finance, Harvard Business School Deborah Wood, Florida Resident , Research Fellow, Heritage Foundation's Grover Hermann Center for the Federal Budget Clips 23:05 Sen. Sheldon Whitehouse (D-RI): In 2022 and 2023, more than a dozen insurance companies left the Florida residential market, including national insurers like Farmers. Residents fled to Citizens Property Insurance, the state backed insurer of last resort, which ballooned from a 4% market share in 2019 to as much as 17% last year. If it has to pay out claims that exceed its reserves, citizens can levy a surcharge on Florida insurance policy holders across the state. Good luck with that. Particularly if the surcharge grows to hundreds or even thousands of dollars to depopulate its books. Citizens has let private insurers cherry pick out its least risk policies. Those private insurers may have problems of their own, as we will hear today. 25:10 Sen. Sheldon Whitehouse (D-RI): The federal budget takes a hit because these insurers and their policies are accepted by Freddie Mac and Fannie Mae, who either own or guarantee a large part of our $12 trillion mortgage market. This all sounds eerily reminiscent of the run-up to the mortgage meltdown of 2008, including a role of potentially captive or not fully responsible rating agencies. 25:45 Sen. Sheldon Whitehouse (D-RI): Florida is far from alone. A New York Times investigation found that the insurance industry lost money on homeowners coverage in 18 states last year, and the states may surprise you. The list includes Illinois, Michigan, Utah, Washington, and Iowa. Insurers in Iowa lost money each of the last four years. This is a signal that hurricanes and earthquakes, once the most prevalent perils, are being rivaled by hail, windstorms, and wildfires. 28:00 Sen. Sheldon Whitehouse (D-RI): This isn't all that complicated. Climate risk makes things uninsurable. No insurance makes things unmortgageable. No mortgages crashes the property markets. Crashed property markets trash the economy. It all begins with climate risk, and a major party pretending that climate risk isn't real imperils our federal budget and millions of Americans all across the country. 33:45 Sen. Chuck Grassley (R-IA): Insurance premiums are far too high across the board and may increase after the recent storms, including those very storms in my state of Iowa. Climate change isn't the primary driver of insurance rate hikes and collapse of the insurance industry isn't imminent. Although I'll have to say, Iowa had six property and casualty companies pull out of insuring Iowans. Climate change doesn't explain why auto insurance premiums in 2024 have increased by a whopping 20% year over year. It also doesn't account for the consistent failure of liberal cities to fight crime, which has raised insurance risk and even caused insurers to deny coverage. Expensive liberal policies, not climate change, are much to blame for these market dynamics. 39:00 Sen. Sheldon Whitehouse (D-RI): The first witness is Rade Musulin. Rade is an actuary with 45 years of experience in insurance, specializing in property pricing, natural perils, reinsurance, agriculture, catastrophe, risk modeling, public policy development, and climate risk. Specifically, he spent many years working in Florida, including as chair of the Florida Hurricane Catastrophe Fund Advisory Council during the time in which Citizens Property Insurance Corporation was established. 39:35 Sen. Sheldon Whitehouse (D-RI): Our second witness is Dr. Ishida Sen. Dr. Sen is an Assistant Professor at Harvard Business School. Her recent research examines the pricing of property insurance and the interactions between insurance and mortgage markets. This includes the role that institutions and the regulatory landscape play and the broader consequences for real estate markets, climate adaptation, and our overall financial stability. 40:00 Sen. Sheldon Whitehouse (D-RI): Our third witness is Deb Wood. Ms. Wood and her husband Dan McGrath are both retired Floridians. They moved to South Florida in 1979 and lived in Broward County, which includes Fort Lauderdale for 43 years until skyrocketing insurance premiums became too much. They now reside in Tallahassee, Florida. 40:35 Sen. Chuck Grassley (R-IA): Dr. EJ Antoni is a Research Fellow at the Heritage Foundation Grover M. Hermann Center for the Federal Budget. His research focuses on fiscal and monetary policy, and he previously was an economist at the Texas Public Policy Foundation. Antoni earned his Master's degree and Doctor's degree in Economics from Northern Illinois University. 41:10 Sen. Chuck Grassley (R-IA): Commissioner Glen Mulready has served as Oklahoma's 13th Insurance Commissioner and was first elected to this position in 2019. Commissioner Mulready started his insurance career as a broker in 1984, and also served in the Oklahoma State House of Representatives. 42:15 Rade Musulin: Okay. My name is Ray Muslin. I'm an actuary who has extensive experience in natural hazard risks and funding arrangements for the damage and loss they cause. I've worked with many public sector entities on policy responses to the challenges of affordability, availability of insurance, and community resilience. This work included participating in Florida's response to Hurricane Andrew, which included the creation of the Florida Hurricane Catastrophe Fund and Citizens Property Insurance Corporation. The Cat Fund and Citizens can access different forms of funding than traditional insurance companies. Instead of holding sufficient capital or reinsurance before an event to cover the cost of potential losses, both entities use public sources of capital to reduce upfront costs by partially funding losses post-event through bonding and assessments. All property casualty insurance policy holders, whether in Citizens or not, are subject to its assessments. While the Cat Fund can also assess almost all policies, including automobile, this approach exposes Floridians to debt and repayment if large losses occur, and it subsidizes high risk policies from the entire population. These pools, others like them in other states, and the NFIP have contributed to rapid development in high risk areas driving higher costs in the long run. In Florida, national insurers have reduced their exposure as a significant proportion of the insurance market has moved to Citizens or smaller insurers with limited capital that are heavily dependent on external reinsurance. To date, Florida's system has been successful in meeting its claims obligations, while improvements in building codes have reduced loss exposure. However, for a variety of reasons, including exposure to hurricanes, claims cost inflation, and litigation, Florida's insurance premiums are the highest in the nation, causing significant affordability stress for consumers. According to market research from Bankrate, the average premium for a $300,000 home in Florida is three times the national average, with some areas five times the national average. A major hurricane hitting a densely populated area like Miami could trigger large and long lasting post-event assessments or even exceed the system's funding capacity. Continued rapid exposure growth and more extreme hurricane losses amplified by climate change will cause increasing stress on the nation's insurance system, which may be felt through solvency issues, non-renewals, growth of government pools, and affordability pressure. 44:55 Rade Musulin: Evidence of increasing risk abounds, including Hurricane Otis in 2023, which rapidly intensified from a tropical storm to a cat. five hurricane and devastated Acapulco in Mexico last summer. Water temperatures off Florida exceeded a hundred degrees Fahrenheit last week. As was alluded to earlier, NOAA forecast an extremely active hurricane season for '24. We've seen losses in the Mid-Atlantic from Sandy, record flooding from Harvey, and extreme devastation from Maria, among others. In coming decades, we must prepare for the possibility of more extreme hurricanes and coastal flooding from Texas to New England. 46:50 Dr. Ishita Sen: Good morning Senators. I am Ishita Sen, Assistant Professor at Harvard Business School and my research studies insurance markets. In recent work with co-authors at Columbia University and the Federal Reserve Board, I examine how climate risk creates fiscal and potentially financial instability because of miscalibrated insurer screening standards and repercussions to mortgage markets. 47:15 Dr. Ishita Sen: Insurance is critical to the housing market. Property insurers help households rebuild after disasters by preserving collateral values and reducing the likelihood that a borrower defaults. Insurance directly reduces the risks for mortgage lenders and the Government-Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac Mortgage Lenders therefore require property insurance and the GSEs only purchase mortgages backed by insurers who meet minimum financial strength ratings, which measure insurer solvency and ability to pay claims. The GSEs accept three main rating agencies AM Best, S & P and, more recently, Demotech. And to provide an example, Fannie Mae requires insurers to have at least a B rating from AM Best, or at least an A rating from Demo Tech to accept a mortgage. Now, despite having this policy in place, we find a dramatic rise in mortgages backed by fragile insurers and show that the GSEs and therefore the taxpayers ultimately shoulder a large part of the financial burden. Our research focuses on Florida because of availability of granular insurance market data, and we show that traditional insurers are exiting and the gap is rapidly being filled by insurers, rated by Demotech, which has about 60% market share in Florida today. These insurers are low quality across a range of different financial and operational metrics, and are at a very high risk of becoming insolvent. But despite their risk, these insurers secure high enough ratings to meet the minimum rating requirements set by the GSEs. Our analysis shows that many actually would not be eligible under the methodologies of other rating agencies, implying that in many cases these ratings are inflated and that the GSEs insurer requirements are miscalibrated. 49:20 Dr. Ishita Sen: We next look at how fragile insurers create mortgage market risks. So in the aftermath of Hurricane Irma, homeowners with a policy from one of the insolvent Demotech insurers were significantly more likely to default on their mortgage relative to similar borrowers with policies from stable insurers. This is because insurers that are in financial trouble typically are slower to pay claims or may not pay the full amounts. But this implies severe economic hardships for many, many Floridians despite having expensive insurance coverage in place. However, the pain doesn't just stop there. The financial costs of fragile insurers go well beyond the borders of Florida because lenders often sell mortgages, for example, to the GSEs, and therefore, the risks created by fragile insurers spread from one state to the rest of the financial system through the actions of lenders and rating agencies. In fact, we show two reasons why the GSEs bear a large share of insurance fragility risk. First is that lenders strategically securitize mortgages, offloading loans backed by Demotech insurers to the GSEs in order to limit their counterparty risk exposures. And second, that lenders do not consider insurer risk during mortgage origination for loans that they can sell to the GSEs, even though they do so for loans that they end up retaining, indicating lax insurer screening standards for loans that can be offloaded to the GSEs. 50:55 Dr. Ishita Sen: Before I end, I want to leave you with two numbers. Over 90%. That's our estimate of Demotech's market share among loans that are sold to the GSEs. And 25 times more. That's Demotech's insolvency rate relative to AM Best, among the GSE eligible insurers. 57:15 Glen Mulready: As natural disasters continue to rise, understanding the dynamics of insurance pricing is crucial for both homeowners and policymakers. Homeowners insurance is a fundamental safeguard for what is for many Americans their single largest asset. This important coverage protects against financial loss due to damage or destruction of a home and its contents. However, recent years have seen a notable increase in insurance premiums. One significant driver of this rise is convective storms and other severe weather events. Convective storms, which include phenomena like thunderstorms, tornadoes, and hail, have caused substantial damage in various regions. The cost to repair homes and replace belongings after such events has skyrocketed leading insurance companies to adjust their premiums to cover that increased risk. Beyond convective storms, we've witnessed hurricanes, wildfires, and flooding. These events have not only caused damage, but have also increased the long-term risk profile of many areas. Insurance companies are tasked with managing that risk and have responded by raising premiums to ensure they can cover those potential claims. 58:30 Glen Mulready: Another major factor influencing homeowner's insurance premiums is inflation. Inflation affects the cost of building materials, labor, and other expenses related to home repair and reconstruction. As the cost of living increases, so does the cost of claims for insurers. When the price of lumber, steel, and other essential materials goes up, the expense of repairing or rebuilding homes also rises. Insurance companies must reflect these higher costs in their premiums to maintain financial stability and ensure they can meet those contractual obligations to policyholders. 59:35 Glen Mulready: I believe the most essential aspect of managing insurance premiums is fostering a robust, competitive free market. Competition among insurance companies encourages innovation and efficiency, leading to better pricing and services for consumers. When insurers can properly underwrite and price for risk, they create a more balanced and fair market. This involves using advanced data analytics and modeling techniques to accurately assess the risk levels of different properties. By doing so, insurance companies can offer premiums that reflect the true risk, avoiding excessive charges for low risk homeowners, and ensuring high risk properties are adequately covered. Regulation also plays a crucial role in maintaining a healthy insurance market. Policyholders must strike a balance between consumer protection and allowing insurers the freedom and flexibility to adjust their pricing based on the risk. Overly stringent regulations can stifle competition and lead to market exits, reducing choices for consumers. We've seen this play out most recently in another state where there were artificial caps put in place on premium increases that worked well for consumers in the short term, but then one by one, all of the major insurers began announcing they would cease to write any new homeowners insurance in that state. These are all private companies, and if there's not the freedom and flexibility to price their products properly, they may have to take drastic steps as we've seen. Conversely, a well-regulated market encourages transparency and fairness, ensuring that homeowners have access to the most affordable and adequate coverage options. 1:02:00 Dr. EJ Antoni: I'm a public finance economist and the Richard F. Aster fellow at the Heritage Foundation, where I research fiscal and monetary policy with a particular focus on the Federal Reserve. I am also a senior fellow at the Committee to Unleash Prosperity. 1:02:15 Dr. EJ Antoni: Since January 2021, prices have risen a cumulative 19.3% on average in the American economy. Construction prices for single family homes have risen much faster, up 30.5% during the same time. 1:03:20 Dr. EJ Antoni: Actuarial tables used in underwriting to estimate risk and future losses, as well as calculate premiums, rely heavily on those input costs. When prices increase radically, precisely as has happened over the last several years, old actuarial tables are of significantly less use when pricing premiums because they will grossly understate the future cost to the insurer. The sharp increase in total claim costs since 2019 has resulted in billions of dollars of losses for both insurers and reinsurers prompting large premium increases to stop those losses. This has put significant financial stress on consumers who are already struggling with a cost of living crisis and are now faced with much higher insurance premiums, especially for homeowners insurance. 1:05:10 Dr. EJ Antoni: The increase in claims related to weather events has undoubtedly increased, but it is not due to the climate changing. This is why the insurance and reinsurance markets do not rely heavily on climate modeling when pricing premiums. Furthermore, climate models are inherently subjective, not merely in how the models are constructed, but also by way of the inputs that the modeler uses. In other words, because insufficient data exists to create a predictive model, a human being must make wide ranging assumptions and add those to the model in place of real world data. Thus, those models have no predictive value for insurers. 1:07:40 Sen. Sheldon Whitehoue (D-RI): You say that this combination of demographics, development, and disasters poses a significant risk to our financial system. What do you mean by risk to our financial system Rade Musulin: Well, Senator, if you look at the combination, as has been pointed out, of high growth and wealth accumulation in coastal areas, and you look at just what we've observed in the climate, much less what's predicted in the future, there is significant exposure along the coastline from Maine to Texas. In fact, my family's from New Jersey and there is enormous development on the coast of New Jersey. And if we start to get major hurricanes coming through those areas, the building codes are probably not up to the same standards they are in Florida. And we could be seeing some significant losses, as I believe was pointed out in the recent Federal Reserve study. Sen. Sheldon Whitehoue (D-RI): And how does that create risk to the financial system? Rade Musulin: Well, because it's sort of a set of dominoes, you start with potentially claims issues with the insurers being stressed and not able to pay claims. You have post-event rate increases as we've seen in Florida, you could have situations where people cannot secure insurance because they can't afford it, then that affects their mortgage security and so on and so forth. So there are a number of ways that this could affect the financial system, sir. Sen. Sheldon Whitehoue (D-RI): Cascading beyond the immediate insurer and becoming a national problem. Rade Musulin: Well, I would just note Senator, that in Florida, the real problems started years after we got past Andrew. We got past paying the claims on Andrew, and then the big problems occurred later when we tried to renew the policies. 1:10:50 Sen. Sheldon Whitehouse (D-RI): And you see in this, and I'm quoting you here, parallels in the 2008 financial crisis. What parallels do you see? Dr. Ishita Sen: So just like what happened during the financial crisis, there were rating agencies that gave out high ratings to pools of mortgages backed by subprime loans. Here we have a situation where rating agencies like Demotech are giving out inflated ratings to insurance companies. The end result is sort of the same. There is just too much risk and too many risky mortgages being originated, in this case backed by really low quality insurers that are then entering the financial system. And the consequences of that has to be born by, of course the homeowners, but also the mortgage owners, GSCs (Government Sponsored Enterprises), the lenders, and ultimately the federal and state governments. Sen. Sheldon Whitehouse (D-RI): You say, this will be my last question. The fragility of property insurers is an important channel through which climate risk might threaten the stability of mortgage markets and possibly the financial system. What do you mean when you refer to a risk to the financial system? Dr. Ishita Sen: Well, as I was explaining the GSEs, if there are large losses that the GSEs face, then those losses have to be plugged by somebody. So the taxpayers, that's one channel through which you've got risk to the financial system and the GSE's serve as a backstop in the mortgage market. They may not have the ability or capacity to do so in such a scenario, which affects mortgage backed security prices, which are held by all sorts of financial institutions. So that starts affecting all of these institutions. On the other hand, if you've got a bunch of insurers failing, another channel is these insurers are one of the largest investors in many asset classes like corporate bonds, equities, and so on. And they may have to dump these securities at inopportune times, and that affects the prices of these securities as well. 1:12:45 Sen. Chuck Grassley (R-AI): Dr. Antoni, is there any evidence to support the notion that climate change is the greatest threat to the insurance market? Dr. EJ Antoni: No. Senator, there is not. And part of that has to do again, with the fact that when we look at the models that are used to predict climate change, we simply don't have enough empirical data with which we can input into those models. And so as a result of that, we have to have human assumptions on what we think is going to happen based essentially on a guess. And as a result of that, these models really are not of any predictive value, and that's why these models for the last 50 years have been predicting catastrophic outcomes, none of which have come true. 1:14:45 Glen Mulready: This focus on the rating agencies, I would agree with that if that were the be all end all. But the state insurance commissioners in each 50 states is tasked with the financial solvency of the insurance companies. We do not depend on rating agencies for that. We are doing financial exams on them. We are doing financial analysis every quarter on each one of them. So I would agree if that was the sort of be all end all, forgive that phrase, but it's not at all. And we don't depend very much at all on those rating agencies from our standpoint. 1:22:15 Dr. Ishita Sen: On the point about regulators looking at -- rating agencies is not something that we need to look at. I would just point out that in Florida, if you look at the number of exams that the Demotech rated insurers, that by the way have a 20% insolvency rate relative to 0% for traditional insurers, they get examined at the same rate as the traditional insurers like Farmers and AllState get examined, which is not something that you would expect if you're more risky. You would expect regulators to come look at them much, much more frequently. And the risk-based capital requirements that we have currently, which were designed in the 1980s, they're just not sensitive enough to new risks like wildfire and hurricanes and so on. And also not as well designed for under-diversified insurance companies because if so, all of these insurers were meeting the risk-based capital requirements, however, at the same time going insolvent at the rate of 20%. So those two things don't really go hand in hand. 1:23:25 Dr. Ishita Sen: Ultimately what the solution is is something that is obviously the main question that we are here to answer, but I would say that it is extremely hard to really figure out what the solution is, in part because we are not in a position right now to even answer some basic facts about how big the problem is, what exactly the numbers look like. For instance, we do not know basic facts about how much coverage people have in different places, how much they're paying. And when I say we don't know, we don't know this at a granular enough level because the data does not exist. And the first step towards designing any policy would be for us to know exactly how bad the problem is. And then we come up with a solution for that and start to evaluate these different policy responses. Right now we are trying to make policy blindfolded. 1:23:50 Sen. Ron Johnson (R-WI): So we've had testimony before this committee that we've already spent $5-6 trillion. That's 5,000 to 6,000 billion dollars trying to mitigate climate change. We haven't made a dent in it. Their estimates, it's going to cost tens of trillions of dollars every year to reach net zero. So again, this is not the solution for a real problem, which is the broken insurance market. I have enough Wisconsin residents who live on the Gulf Coast in Florida to know after Hurricane Ian, you got some real problems in Florida. But fixing climate change isn't the solution. 1:33:15 Sen. Jeff Merkley (D-OR): In looking at the materials I saw that Citizens Property Insurance Company, I gather that's Louisiana and Florida, that have a completely state backed program. Well, alright, so if the state becomes the insurer of last resort and they now suffer the same losses that a regular private insurance company is suffering, now the folks in the state are carrying massive debt. So that doesn't seem like a great solution. Dr. Ishita Sen: That's definitely a problem, right? The problem is of course, that whether the state then has the fiscal capacity to actually withstand a big loss, like a big hurricane season, which is a concern that was raised about Citizens. And in such a scenario then in a world where they do not have enough tax revenue, then they would have to go into financial markets, try to borrow money, which could be very costly and so on. So fiscally it's going to be very challenging for many cities and many municipalities and counties and so on. 1:36:40 Sen. Mitt Romney (R-UT): I wish there were something we could do that would reduce the climate change we're seeing and the warming of the planet. But I've seen absolutely nothing proposed by anyone that reduces CO2 emissions, methane gases and the heating of the planet. Climate change is going to happen because of the development in China and Indonesia and Brazil, and the only thing that actually makes any measurable impact at all is putting a price on carbon, and no one seems to be willing to consider doing that. Everything else that's being talked about on the climate — Democratic Senator: I got two bills. Sen. Mitt Romney (R-UT): I know you and I are, but you guys had reconciliation. You could have done it all by yourselves and you didn't. So the idea that somehow we're going to fix climate and solve the insurance problem is pie in the sky. That's avoiding the reality that we can't fix climate because that's a global issue, not an American issue. Anyway, let me turn back to insurance. 1:38:30 Sen. Mitt Romney (R-UT): So the question is, what actions can we take? Fiscal reform? Yes, to try and deal with inflation. Except I want to note something, Mr. Antoni, because you're esteemed at the Heritage Foundation. 72% of federal spending is not part of the budget we vote on. So we talk about Biden wants to spend all this.... 72% we don't vote on; we only vote on 28%. Half of that is the military. We Republicans want more military spending, not less. So that means the other 14%, which the Democrats want to expand, there's no way we can reduce the 14% enough to have any impact on the massive deficits we're seeing. So there's going to have to be a broader analysis of what we have to do to reign in our fiscal challenges. I just want to underscore that. I would say a second thing we can do, besides fiscal reform and dealing with inflation, is stopping subsidizing high risk areas. Basically subsidizing people to build expensive places along the coast and in places that are at risk of wildfire. And we subsidize that and that creates huge financial risk to the system. And finally, mitigation of one kind or another. That's the other thing we can do is all sorts of mitigation: forestry management, having people move in places that are not high risk. But if you want to live in a big house on the coast, you're gonna have to spend a lot of money to insure it or take huge risk. That's just the reality. So those are the three I come up with. Stop the subsidy, mitigation, and fiscal reform. What else am I missing, Mr. Musulin? And I'm just going to go down the line for those that are sort of in this area to give me your perspectives. Rade Musulin: Well, thank you, Senator. And I'd agree with all those things. And I'd also add that we need to start thinking about future-proofing our building codes and land use policies. The sea levels are rising. If you're going to build a house that's supposed to last 75 years, you ought to be thinking about the climate in 75 years when you give somebody a permit to build there. So I'd say that's important. I'd also say that large disasters also drive inflation because it puts more pressure and demand on labor and materials. More disasters means supplies that could have been used to build new homes for Americans or diverted to rebuild homes in the past. So certainly doing things to reduce the vulnerability of properties and improve their resilience is important. And I do think, sir, that there are things we can do about climate change with respect over periods of decades that can make a difference in the long run. Thank you. Sen. Mitt Romney (R-UT): Thank you. Yes. Dr. Ishita Sen: So before that, the one point about inflation that we are missing, which is without doubt it is a contributing factor, but the US has had inflation in the past without such an acute crisis in insurance markets. So whether that is the biggest cause or not is up for debate. I don't think we have reached a conclusion on inflation being the biggest contributor of rising insurance cost. Sen. Mitt Romney (R-UT): It's just a big one. You'd agree It's a big one? Dr. Ishita Sen: I agree. It's a big one, but I wouldn't say it's the biggest one in terms of policy solutions. I completely agree with you on, we need to stop subsidizing building in high risk areas. That's definitely one of the things we need to do that. Mitigation, another point that you bring up. And on that, I would say not only do we need to harden our homes, but we also need to harden our financial institutions, our banks, and our insurance companies in order to make them withstand really large climate shocks that are for sure coming their way. Sen. Mitt Romney (R-UT): Thank You, Ms. Wood. I'm going to let you pass on this just because that's not your area of expertise. Your experience was something which focused our thinking today. Mr. Mulready. Glen Mulready: Thank you, Senator. I would say amen to your comments, but I'll give you three quick things. Number one, FEMA has a survey out that states that every $1 spent in mitigation saves $6 in lost claims. It pays off. Number two, unfortunately, a lot of communities have to have a disaster happen. In Moore, Oklahoma, back a dozen years ago, an EF5 (tornado) hit, it was just totally devastating. After that, the city of Moore changed their zoning, they changed their building zoning codes, and then third, the city of Tulsa, back in the eighties, had horrible flooding happened. So they invested over decades in infrastructure to prevent flooding. Now we're one of only two communities in the country that are Class one NFIP rated. 1:45:40 Sen. Chris Van Hollen (D-MD): One way to address this, and I think it was discussed in a different matter, is the need to get the data and to get consensus on where the risks lie, which is why last year Senator Whitehouse, Senator Warren and I sent a letter to the Treasury Department, to the Federal Insurance Office (FIO), urging them to collect information from different states. I'm a supporter of a state-based insurance system for property and casualty insurance, but I do think it would benefit all of us to have a sort of national yardstick against which we can measure what's happening. So Dr. Sen, could you talk a little bit about the benefit of having a common source of insurance data through the FIO and how that could benefit state regulators and benefit all of us? Dr. Ishita Sen: Yeah, absolutely. Thanks for bringing that up. That's just the first order importance, I think, because we don't even know the basic facts about this problem at a granular enough level. The risks here are local, and so we need to know what's going zip code-by-zip code, census tract-by-census tract, and for regulators to be able to figure out exactly how much risk is sitting with each of these insurance companies they need to know how much policies they're writing, what's the type of coverage they're selling in, what are the cancellations looking like in different zip codes. Only then can they figure out exactly how exposed these different insurers are, and then they can start designing policy about whether the risk-based capital ratios look alright or not, or should we put a surcharge on wildfires or hurricanes and so on? And we do need a comprehensive picture. We just can't have a particular state regulator look at the risks in that state, because of course, the insurer is selling insurance all over the country and we need to get a comprehensive picture of all of that. 1:47:40 Sen. Chris Van Hollen: I appreciate that. I gather that the Treasury Department is getting some resistance from some state insurance regulators. I hope we can overcome that because I'm not sure why anyone would want to deny the American people the benefit of the facts here. 1:48:45 Rade Musulin: I will just note that sometimes climate change itself can contribute to the inflation we've been talking about. For example, there were beetle infestations and droughts and fires in Canada, which decimated some of the lumber crop and led to a fivefold increase in the cost of lumber a few years ago. So some of this claims inflation is actually related to climate change, and I think we need to address that. 1:49:35 Glen Mulready: If you didn't know, the NAIC, National Association of Insurance Commission is in the midst of a data collection right now that will collect that data for at least 80% of the homeowner's market. And we have an agreement with FIO (Federal Insurance Office) to be sharing that data with them. They originally came to us, I got a letter from FIO and they were requesting data that we did not actually collect at the zip code level, and they had a very stringent timeline for that. So my response, it wasn't, no, it was just, look, we can't meet that timeline. We don't collect that today. We can in the future. But from that is where this has grown the data called by the NEIC. Sen. Chris Van Hollen (D-MD): So I appreciate, I saw that there had been now this effort on behalf of the....So has this now been worked out? Are there any states that are objecting, to your knowledge at this point in time, in terms of sharing data? Glen Mulready: I don't know about specific states. We will be collecting data that will represent at least 80% of the market share. Music by Editing Production Assistance

Episode Highlight Join Kelli Hayes Smith as she sits down with Jen Haslacker, the dynamic Sales Director for Host Agency Partnerships at Arch Roam Right, to delve into the crucial role travel insurance plays for both travelers and travel advisors. Listen to Kelli and Jen as they explore the numerous benefits of travel insurance, from post-departure coverage and medical benefits to protection against trip cancellations and delays. Jen emphasizes why recommending travel insurance is essential for travel advisors to safeguard their clients and their own businesses. She also shares insightful tips on selecting the right insurance company, presenting insurance options to clients, and effectively handling claims. Additionally, the episode touches on the importance of commission protection and showcases some fascinating stories of unexpected claims. Travel Insurance Post-Departure Benefits Medical Coverage Trip Cancellation Travel Advisor Commission Protection Comprehensive Protection: Travel insurance offers vital post-departure benefits, including medical coverage, trip delay assistance, lost baggage recovery, and political and security evacuation. Advisor's Responsibility: It's imperative for travel advisors to recommend travel insurance to shield their clients and themselves from potential legal issues. Choosing Wisely: When selecting a travel insurance company, seek referrals, consider their claims turnaround time, and opt for companies rated A+ or higher by AM Best. Referral Policy: Travel advisors should direct insurance-related queries to the insurance company and avoid guaranteeing coverage themselves. Annual Plans Insight: Annual travel insurance plans might be more cost-effective but often come with reduced coverage limits. Commission Protection: Some insurance policies include commission protection, ensuring travel advisors receive their commission even if a client cancels their trip. 00:00 - Introduction and Background 03:14 - Understanding the Benefits of Travel Insurance 07:27 - Tips for Choosing the Right Travel Insurance Company 09:29 - Presenting Travel Insurance Options to Clients 20:33 - Unexpected Stories of Covered Claims Tune in for an inspiring and informative episode that highlights the indispensable value of travel insurance, ensuring you and your clients are well-protected and prepared for any journey!

For over twenty years in the insurance industry, Erin Dey has dedicated her professional career to helping others. From insurance agents to agency owners, underwriters, and consumers, her love and passion for helping others have made her one of the top leaders in our industry. In this episode, you will get to learn all about Erin and her journey through the insurance industry. Her story is inspiring and her knowledge and expertise will make you want to work with her and her team. Erin is the owner and Agency Principal of Agency Insurance & Financial Services, an independent insurance agency that specializes in Errors & Omissions (E&O) insurance for independent agencies. Throughout her career, Erin has held various positions on both the retail side and broker side of the insurance world. What sets her apart is her unwavering commitment to creating an excellent customer experience, tailored specifically to meet the unique needs of each client. At her agency, they thrive on the challenge of adapting their approach for every agency they work with, always aiming to be one of their top resources.FUN FACT: Erin has an identical twin sister named Laura. Laura is her “person in life” and sounding board. Because they are really identical, it is hard for people to actually differentiate them which makes it lots of fun for them. Make sure you connect with Erin on LinkedIn here. This episode is brought to you by Cyber Made Simple:  Insurance companies, wholesalers, captives, MGAs, and PEOs, are you struggling to provide cyber liability coverage to your small business clients? We know cyber is a difficult peril to manage, and we understand it is a risk you don't want to carry on your paper. We get it! This is where we come in. We have made cyber liability insurance really simple. We help you add cyber liability insurance to your commercial portfolio as a bolt-on coverage. Not only we will help you grow your commercial portfolio, increase revenues, and maximize retention, but we will also help you protect your small business clients from this horrible peril. Through our Cyber Risk Purchasing Group, your insurance company or MGA can now include cyber liability insurance as a bolt-on coverage for your small business clients. It's simple, easy, cost-effective, and more importantly, you get to make tons of revenue. Think about this: no risk to your paper, no filings, no claims handling, no reinsurance, no applications, and available on an admitted basis in all 50 States, Puerto Rico, and Washington D.C. through an AM Best 'A-' rated carrier. Can it get better? Of course, it can! Carriers, Wholesalers, Captives, PEOs, and MGAs using our Cyber Risk Purchasing Group policy are making hundreds of thousands of dollars of additional revenue. Awesome! Right? So, contact us NOW so we can help you take your company to the next level. Visit https://cyberinsurance.services/ to contact us and learn more about the Cyber Program.Remember to subscribe to our podcast and download all our episodes on your iPhone, Android, Audible, or Spotify so you can listen to us anywhere in the world and in your own time. Remember to subscribe to our podcast and download all our episodes in your iPhone, Android, or Spotify.

Credit to Senator Sheldon Whitehouse for raising the issue where in Florida you have a tangled homeowner insurance market where most (if not all) big insurers have left the state which leaves smaller insurance companies who are rated by a company called Demotech.. largely because the 'gold standard' in rating companies, AM Best and S&P won't rate smaller and more fragile insurance companies.. is this a powder keg that Governor DeSantis is sitting on and exactly what's going on in the Florida homeowners insurance market? #SenatorWhitehouse #floridainsurance  

High school students Timothy Chen and Aryan Mukherjee, who took part in the Modeling the Future Challenge, a competition that uses math to address real world problems, discussed their project that also used AM Best data to examine how legalized recreational marijuana could impact private passenger auto insurance rates.

From selling golf balls back to golfers on her lemonade stand to Independent Agency Owner to InsureTech CEO, the great Margeaux Giles is an inspiring serial entrepreneur. You will love every second of her story. Margo, as everyone calls her, is the CEO of IRYS InsurTech, an Agency Management System (AMS) platform that was “Built by Agents, for Agents”. She is an experienced industry leader in Insurtech with a proven track record of evaluating, creating, and implementing software for Insurance Agents, Carriers, Wholesalers, and Retail Insurtech vendors. She has over a decade of executive experience in building operations and go-to-market strategy in enterprise settings along with several years on the MGA/Wholesale submission and issuance processes as well as API creation and integrations in the Carrier/Reinsurance space.In this dynamic discussion, Ariel Rivera and Margo sat down to discuss her story and what inspired her to build the amazing IRYS AMS. She provides an insightful analysis of her experience in developing the AMS, pinpointing the gaps in current technologies that fail to capture crucial relationship data, that are vital for agency owners to scale their businesses and deepen their relationships with their clients. She loves advocating for a more integrated approach to data management, aiming for a broader understanding of clients that can significantly influence business outcomes. Margo's story will inspire you; her guidance and comprehensive understanding of the insurance industry are remarkable, and you will have lots of FUN listening to her story. FUN FACT: Margo loves reading romance novels. She calls it “her escape from reality” because it helps her disconnect and relax. This episode is brought to you by Cyber Made Simple:  Insurance companies, MGAs, and PEOs are you struggling to provide cyber liability coverage to your small business clients? We know cyber is a difficult peril to manage, and we understand it's a risk you don't want on your paper. We get it! This is where we come in. We have a great solution to help you grow your commercial portfolio, increase revenues, and maximize retention. Through our Cyber Risk Purchasing Group, your insurance company or MGA can now include cyber liability insurance as a bolt-on product to your commercial portfolio. It's simple, easy, cost-effective, and more importantly, you get to make tons of revenue. Think about this: no risk to your paper, no filings, no claims handling, no reinsurance, no applications, and available on an admitted basis in all 50 States and Washington D.C. through an AM Best 'A-' rated carrier. Can it get better? Of course, it can! Carriers and MGAs using our Cyber Risk Purchasing Group policy are making hundreds of thousands of dollars of additional revenue. Awesome! Right? So, contact us NOW so we can help you take your company to the next level. Visit https://cyberinsurance.services/ to contact us and learn more about the Cyber Program.Remember to subscribe to our podcast and download all our episodes on your iPhone, Android, Audible, or Spotify so you can listen to us anywhere in the world and in your own time. Remember to subscribe to our podcast and download all our episodes in your iPhone, Android, or Spotify.

Sridhar Manyem, senior director, AM Best, said other key issues with data from wearables include using it ethically and compliantly. Manyem spoke with AM Best TV at Insurtech Hartford Symposium 2024.

A new report claims that Florida's property insurance market is full of “low quality insurers,” especially those Florida-based companies that write the bulk of the 7.5 million homeowners and condo insurance policies.  It casts aspersions on Demotech, the rating agency that reviews their financial stability.Former Florida Deputy Insurance Commissioner Lisa Miller sat down with Demotech President Joe Petrelli to get the other side of the story that the report didn't.  She also learned that it wasn't low capital and surplus that led to seven company insolvencies, as the report claims, but instead targeted technology-enabled claim instigation.Show Notes  (For full Show Notes, visit https://lisamillerassociates.com/episode-49-when-insurers-exit/) The report, When Insurers Exit: Climate Losses, Fragile Insurers, and Mortgage Markets was written by researchers at Columbia University, Harvard University, and the Federal Reserve Board and published online prior to being peer reviewed.  The report's abstract describes it as a study of how homeowners insurance markets respond to growing climate losses and how this impacts the home mortgage markets.  “Using Florida as a case study, we show that traditional insurers are exiting high risk areas, and new lower quality insurers are entering and filling the gap.  These new insurers service the riskiest areas, are less diversified, hold less capital, and 20 percent of them become insolvent.  We trace their growth to a lax insurance regulatory environment.  Yet, despite their low quality, these insurers secure high financial stability ratings, not from traditional rating agencies, but from emerging rating agencies.”  The report specifically targets rating agency Demotech, which provides Financial Stability Ratings (FSR) for most of the 50 or so Florida-based property insurance companies, including six of the recent eight carriers to enter the market.  The report claims Demotech's ratings “are high enough to meet the minimum rating requirements” of Fannie Mae and Freddie Mac, which back many home mortgages, but that most of those insurance companies wouldn't meet government requirements if rated by AM Best, suggesting the companies are financially weak.“I think the thing to keep in mind is the report is based on what are called counterfactual AM Best ratings of Demotech-rated companies,” said Joe Petrelli, President of Demotech, who described counterfactual methods as those based on “what-if” scenarios.  “So I think that, in and of itself, should have alerted people that this was not based on anything real or actual.  It was based on counterfactual information.  It's like rewinding the world, changing a few crucial details, and then hitting play to see what happens.  It's essentially a simulation,” said Petrelli.Petrelli is an actuary and a 55-year veteran of the insurance industry.  He and wife Sharon co-founded Demotech in 1985 and today the agency reviews and rates 460 insurance companies across America.  It is registered with the U.S. Securities and Exchange Commission as a nationally-recognized statistical rating organization for insurance companies.  Florida regulators approached Demotech in 1995 to become the very first ratings company to review and rate independent, regional and specialty companies that filled the gap left by....  (For full Show Notes, visit https://lisamillerassociates.com/episode-49-when-insurers-exit/)

Ever fancied a trip to the rolling vineyards of southern France, complete with a glass of exquisite Merlot, without leaving your living room? This episode swirls around the heady aromas of a 2021 Rassoul vintage, but that's just the prelude to an intoxicating exploration of the insurance industry's latest gyrations. We're uncorking the complexities of AM Best's ratings dance, Trump's bond buzz, and Lloyd's impressive performance in 2023. Alongside this, we're sifting through the calls for oversight in the murky world of litigation funding. Paired with tales of southern France, our musings are bound to whet your appetite for both the finer things and the financial intricacies that shape our world. The scene shifts as we navigate the intricacies of insurance ratings, likening the tension of downgrades to the final minutes of a football match facing relegation—case in point, Pie Insurance Group's recent slips and stumbles. Bain Capital's strategic leap into GuideOne and lingering echoes of Mitt Romney's tenure at Bain adorn our conversation. We also share insights from our guest expert, who lifts the veil on Lloyd's of London's secretive syndicates and their storied successes. This chapter is a masterclass in decoding the signals sent by credit rating agencies and sifting through the sector's strategic plays—from GuideOne's unique market stance to the peculiarities of Lloyd's inner workings. Our talk takes a more serious turn, delving into the significant turnaround at Lloyd's of London and the post-pandemic silence within the walls of its iconic building. A reflection on American attitudes towards legal reforms and the disproportionate gains enjoyed by litigation funders over plaintiffs marks a sobering discussion. We wrap it up on a cautionary note, dissecting urgent recalls that hit close to home: the Jule Baby Nova baby swings and Anchor's lithium-ion battery-powered coolers. The perils of product safety are not taken lightly here, as we navigate the fine line between innovation and consumer protection, all while dishing out relatable nuggets about life's little challenges. Join us for an episode that promises more than just a sip of knowledge—it's a full-bodied experience. Timestamps 0:41 Today's wine: Luc Pirlet Reserve Merlot 3:56 Today's topics 5:17 AM Best downgrades 12:14 Trump posts $91 million bond and files notice of appeal in E. Jean Carroll case 17:39 Lloyds profits in 2023 21:38 Litigation Funding Survey: mostr americans want legal reforms against litigation funding 24:48 Recall of the week: Jool nova baby swing 28:19 Second recall: Anker's coolers Connect with RiskCellar: Website: https://www.riskcellar.com/ Brandon Schuh: Facebook: https://www.facebook.com/profile.php?id=61552710523314 LinkedIn: https://www.linkedin.com/in/brandon-stephen-schuh/ Instagram: https://www.instagram.com/schuhpapa/ Nick Hartmann: LinkedIn: https://www.linkedin.com/in/nickjhartmann/

In the first of a series to further explore and differentiate the regulatory bodies and rating agencies overseeing the insurance industry, this podcast presents a conversation with Matthew Mosher, MAAA, FCAS, CERA, President and CEO of AM Best Rating Services. Matt presents an overview of the goals of and approaches taken to evaluate insurance companies with a focus on the important considerations for financial reporting actuaries and how they assist the relationship between AM Best and the companies under review.

In this episode, our host, Ariel Rivera, sat down with Clare DeNicola from the 10 Company to discuss the basic infrastructure every insurance agency should have. From Agency Management Systems (AMS) to Customer Relationship Management (CRM), and VOIP phone systems, every insurance agency needs to have a core infrastructure. It doesn't matter if you are a one-person startup scratch agency or an already established multiple-location agency. Having a solid infrastructure will set you apart from the competition. Once your core systems are in place, you can start adding additional pieces of technology that will complement and improve the Customer Experience and make you and your agency more efficient.  Episode Highlights: What is considered critical infrastructure for an independent insurance agency?Are there any emerging trends or changes in the importance of certain systems in the future?How can agencies maximize the use of technology and measure ROI?Beware of the “bells and whistles”. This episode is brought to you by AR Solutions. Insurance companies and MGAs, are you struggling to provide cyber liability coverage for your small business portfolio? We know it is a difficult peril to manage, and we understand it is a risk you don't want in your paper. We get it! And this is where we come in. We have the perfect solution for your commercial portfolio. Through our Cyber Risk Purchasing your insurance company or MGA can now include cyber liability insurance as a bolt-on product to your commercial portfolio.Think about this: no risk to your paper, no filings, no claims handling, no reinsurance, and available on an admitted basis in all 50 States and Washington D.C. through an AM Best 'A-' rated carrier. Can it get better? Of course it can! Carriers and MGAs using our Cyber Risk Purchasing Group policy are making hundreds of thousands of dollars of additional revenue. Awesome! Right? So, contact us NOW so we can help you take your company or MGA to the next level. Visit https://cyberinsurance.services/ to contact us and learn more about the Cyber Program.#funinsurancesolutions #podcast #cyber #insurancesolutions #podcastdeseguros #insurancepodcast #podcastingRemember to subscribe to our podcast and download all our episodes in your iPhone, Android, or Spotify.

 Episode 703: On today's Unscripted, NAMIC CEO Neil Alldredge talks with Florida Insurance Commissioner Mike Yaworsky about changes to the state's unique insurance market during his first year in the role.

As CEO of Beazley, Adrian Cox runs one of our sector's fastest-moving and best-rated insurance businesses and so any time I can get him behind a microphone and talking to me is time well spent. In the past year this firm has pioneered the placement of cyber cat bonds, undergone a major restructure with the formation of a US excess and surplus lines insurance company and made the most of the new opportunities being thrown up in North American property by more than doubling its underwriting volume there. In this podcast we talk about all these and an awful lot more. Adrian is excellent company and exudes the kind of confidence that senior brokers complain that they sometimes find lacking in the modern insurance and reinsurance market. In our talk we get a clear sense of Adrian's insurance philosophy Here is someone with a clear way of understanding the insurance world and the confidence and authority to go and execute when he feels the time is right. Given the rare series of opportunities the global market is presenting brave and decisive underwriters in 2024, I can highly recommend a detailed listen. NOTES Adrian mentions Lloyd's and now Beazley itself as being ‘A-fifteen' in size. This a reference to AM Best's fifteen-point Financial Size Category scale. XV is the largest size, denoting Capital and Surplus of $2bn or more. LINKS We thank our naming sponsor AdvantageGo: https://www.advantagego.com/ We also thank our audio advertiser, Aventum Group Please contact them on: voi@aventumgroup.com

We wish our listeners a wonderful and prosperous new year! As Rob and Lee continue their holiday break, we bring you another episode from the FNO: InsureTech audio vault. Hosts Rob and Lee had the pleasure of speaking with AM Best TV's Lee McDonald earlier this year, discussing the founding, growth and development of the FNO: InsureTech podcast. With over 200 episodes and counting, Lee and Rob are excited to continue the journey of sharing insuretech with listeners. Check out the interview in video: https://lnkd.in/gnXP-z97